TN H N HOUS USING T TRUS UST FUND UND 2021 C 1 CHALLENGE GE G GRANT PROGR GRAM APPLIC ICATIO TION W WEBINAR JUNE NE 1 18, 2 2020 20 1
HIGHLIGHTS Challenge Grant funds provide seed funding in support of fundraising efforts of non-profits to implement housing activities • Activities must represent: A Unique Milestone Broad Community Initiative, or Significant Expansion of Work Outside Normal Day to Day Activities 2
HIGHLIGHTS • Amount available for the 2021 round is $500,000. • Maximum grant amount is $500,000. Minimum grant amount is $50,000. • All Nonprofit applicants must submit organizational documents through THDA’s online tool: Participant Information Management System (PIMS). • All applications must be submitted electronically to the EDT – Web Transfer System. • There is no cure period. Submission of a complete application is a threshold criterion. 3
HIGHLIGHTS • Applications are due Thursday, August 6, 2020 by 11:59 pm CDT. • Funding announcements by September 30, 2020. • Contract term: October 1, 2020 through September 30, 2023. 4
ELIGIBLE APPLICANTS • Non-profit entities must be organized under Tennessee law or the laws of another state with a current Certificate of Existence and current Certificate of Authorization to do business in TN. • Two years of experience in providing housing assistance in TN. • Have IRS 501(c)(3) or 501 (c)(4) designation. • Be in good program standing with THDA. • Additional requirements as noted in Attachment One: Non-Profit Checklist. 5
ELIGIBLE ACTIVITIES The Housing Activity must significantly involve one of the following broad goals: • Expand or preserve the supply of housing for sale to low and moderate income homebuyers. • Preserve the supply of existing owner occupied units. • Expand or preserve the supply of rental housing for low and moderate income households. • Reduce the number of individuals who are homeless. • Move a significant number of a vulnerable population into housing. 6
ELIGIBLE ACTIVITIES • New construction, reconstruction, and/or rehabilitation of housing for sale. • Rehabilitation of owner occupied units. • New construction and/or rehabilitation of rental units. • Activities designed to reduce the number of individuals who are homeless. • Activities designed to move vulnerable populations into housing. 7
INELIGIBLE ACTIVITIES • Administrative costs of the applicant or any participant in the proposed project. • Non-housing costs associated with the approved housing activity. • Acquisition of land or housing. • Rental assistance. • The housing activity must not be part of an ongoing or existing project. • Costs incurred prior to the Challenge Grant contract start date – October 1, 2020. 8
HOUSING FOR INDIVIDUALS WITH DISABILITIES Housing for persons with physical, emotional, mental, or developmental disabilities must adhere to the qualities of settings eligible for reimbursement under Medicaid home and community – based services as established by the Centers for Medicare and Medicaid Services (CMS) as follows: • Integrated setting with full access to the greater community. • Is selected by the individual from among setting options. • Ensure individual rights of privacy, dignity, respect, and freedom from coercion and restraint. • Optimize autonomy and independence in making life choices. • Facilitate choice regarding services and who provides them. 9
HOUSING FOR INDIVIDUALS WITH DISABILITIES Housing for individuals with disabilities should also adhere to the following if the housing is owned by the sponsor: • Lease or other legally enforceable agreement with similar protections. • Privacy including lockable doors, choice of roommates, and freedom to furnish or decorate. • Control of the individual’s own schedule. • Access to food at any time. • Visitors at any time. • Setting is physically accessible. 10
ELIGIBLE POPULATIONS • Challenge Grant funds may be used to benefit low to moderate income households. • Low to moderate income is defined as gross annual income at or below 80% of area median income as defined by HUD for the HOME Program. 11
LEVERAGE – Eligible Sources Proposals must generate cash leverage in an amount equal to 300% of Challenge Grant funds approved. Leveraged resources must: • Be in the form of cash. • Be used for the approved activity. • Be from a third party entity with no expectation of repayment. • Be secured through formal documentation within nine months of the THDA Challenge Grant contract effective date. • Formal documentation must demonstrate a binding commitment of resources. • Receipt of cash contribution must occur during the grant term. 12
LEVERAGE – Ineligible Sources • Administrative costs of the applicant or its partners. • Other funds of the applicant that are currently on hand at time of agreement start. • Project resources provided through any other THDA programs. • Donated materials, land, or services. • In-kind services. • Funds invested in earlier phases of the proposed project or committed to the activity prior to the commitment of Challenge Grant funds. • Fundraising and capital campaign pledges. 13
LEVERAGE – Commitment Letters • Commitment letters from corporations on company letterhead may be considered as formal documentation of a cash commitment from a third party entity. • Pledges from individuals will not be considered toward meeting the leverage requirement. • Grant funds will not be dispersed until documentation of cash match is received . 14
PROGRAM REQUIREMENTS 15
INCOME LIMITS • The Challenge Grant Program uses the income limits established by the U.S. Department of Housing and Urban Development for the HOME program; and • Household income as defined by the Section 8 Rental Assistance Program. Income Limits are posted on the Challenge Grant Page of the THDA website at www.thda.org. Go to Business Partners – Grantees & Administrators – TN Housing Trust Fund – Challenge Grant Program 16
CRIMINAL BACKGROUND The Challenge Grant Program will follow HUD regulations with regard to the provision of housing for ex-offenders. Housing assistance is prohibited to the following: • Ex-offenders who have been evicted from federally-assisted housing for drug related criminal activity with an effective date of eviction within the last three year period. • An ex-offender household that includes a member who has ever been convicted of drug related criminal activity involving the manufacturing or production of methamphetamines on the premises of federally-assisted housing. • An ex-offender household that includes a member who is subject to a lifetime registration requirement under a state sex-offender registry program. 17
CONSTRUCTION STANDARDS All units constructed or rehabilitated with Challenge Grant funds must meet the following as applicable: • All local codes, rehabilitation standards and zoning ordinances at project completion. • In the absence of local codes, the units must meet the current State approved edition of the applicable International Code. 18
RENT LIMITS • Maximum rents are the High HOME rents. - See Rent Limits posted on the Challenge Grant Page of the THDA website at www.thda.org. Go to Business Partners – Grantees & Administrators – TN Housing Trust Fund – Challenge Grant Program • Property owners are encouraged to charge tenants no more than 30% of their gross monthly income as rent. • The published rents include utilities. The cost of utilities paid by tenants must be subtracted from the published rent to determine the maximum allowable rent. 19
RENT LIMITS – GROUP HOMES The Rent limit for Group Homes is the HUD Fair Market Rent (FMR) limit for the total number of bedrooms in the group home. • Bedrooms of live-in supportive service staff are not included in the calculation of total number of bedrooms. • Each tenant pays a pro-rata share of the total rent. • If tenants are paying utilities, the utility allowance must be subtracted from the FMR limit to determine the max combined rent that may be charged to all tenants. • Rents may not include food or supportive services costs. 20
RENT LIMITS – GROUP HOMES Services and fees for persons with disabilities must adhere to the following: • Disability related services must be non-mandatory. • Persons with disabilities must have the option to choose service providers. • Leases must state whether fee-based services are optional or mandatory. • Leases must identify the amount of additional fees separately from the basic rent for each tenant. 21
RENT LIMITS – GROUP HOMES Group Home Rent Calculation Example: The pro-rata share is calculated by dividing the FMR by the number of persons in the group home. • Number of persons residing in the group home: 3 • Number of bedrooms: 4 (1 bedroom is occupied by a live-in service provider) • Number of bedrooms used to establish rent: 3 • Fair Market Rent: $990, Utility Allowance: $90, Max Total Rent: $900 $900/3 persons = $300 – Max rent per person $300/$900 = .33 – each person’s pro-rata share 22
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